Oversold Hang Seng Tipped To Open In The Green

RTTNews
Jul. 26, 2021, 09:15 PM

(RTTNews) - The Hong Kong stock market has moved lower in two straight sessions, plummeting more than 1,500 points or 6 percent along the way. The Hang Seng Index now rests just beneath the 26,200-point plateau although it's due for a technical rebound on Tuesday at the very least.

The global forecast for the Asian markets is murky, with little movement expected among ongoing Covid-19 concerns. The European markets were mixed and flat and the U.S. bourses were slightly higher and the Asian markets figure to split the difference.

The Hang Seng finished with huge losses on Monday following weakness from the financials, properties, casinos and oil and technology companies.

For the day, the index plummeted 1,129.66 points or 4.13 percent to finish at 26,192.32 after trading between 26,177.40 and 26,878.75.

Among the actives, AAC Technologies dipped 1.46 percent, while AIA Group fell 2.16 percent, Alibaba Group tumbled 6.38 percent, Alibaba Health Info plunged 11.54 percent, ANTA Sports lost 2.18 percent, China Life Insurance weakened 3.24 percent, China Mengniu Dairy dropped 2.62 percent, China Petroleum and Chemical (Sinopec) sank 2.74 percent, China Resources Land stumbled 3.18 percent, CITIC rose 0.37 percent, CNOOC shed 2.60 percent, Country Garden Services cratered 16.60 percent, CSPC Pharmaceutical surrendered 3.34 percent, Galaxy Entertainment retreated 4.73 percent, Hang Lung Properties added 0.64 percent, Henderson Land eased 0.69 percent, Hong Kong & China Gas gained 0.48 percent, Industrial and Commercial Bank of China gave away 0.45 percent, Longfor declined 3.93 percent, Meituan plummeted 13.76 percent, New World Development was down 1.33 percent, Sands China skidded 6.28 percent, Sun Hung Kai Properties and Wharf Real Estate both fell 0.78 percent, Techtronic Industries slipped 1.35 percent, Xiaomi Corporation slid 1.90 percent and WuXi Biologics tanked 9.79 percent.

The lead from Wall Street suggests mild upside as the major averages shook off a soft open on Monday, climbing gradually throughout the day to finish at fresh record closing highs. The Dow gained 82.76 points or 0.24 percent to finish at 35,144.31, while the NASDAQ rose 3.72 points or 0.03 percent to end at 16,565.31 and the S&P 500 added 10.51 points or 0.24 percent to close at 4,422.30. The choppy trading on Wall Street came as upbeat earnings news warred with concerns about the spread of new coronavirus variants. Traders may also have been reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement on Wednesday. The Fed is expected to leave interest rates unchanged, but traders will pay close attention to any comments regarding its asset purchase program. In economic news, the Commerce Department showed another steep drop in new home sales in June. Crude oil futures settled lower Monday amid worries about the outlook for energy demand due to the rapidly spreading delta variant of the coronavirus in several countries around the world. West Texas Intermediate Crude oil futures for September ended down by $0.16 or 0.2 percent at $71.91 a barrel after four straight days of gains.

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